A Study Was Conducted to Determine If There Was a Relationship

question 68

Multiple Choice

A study was conducted to determine if there was a relationship between the prices a non-member of a club paid for various publications and the prices that a member paid for the same publications. The data gathered are shown below. What is the value of the correlation coefficient?

$\begin{array}{ll}\text { Non-member } & \text { Member } \\\text { Price, } x & \text { Price, } \\58 & 32 \\42 & 22 \\46 & 20 \\32 & 16 \\25 & 19 \\75 & 58 \\35 & 34 \\63 & 48\end{array}$

• A) 0.762
• B) 0.857
• C) 0.679
• D) 0.932

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Definitions:

Labor Productivity

An indicator of economic efficiency that assesses the volume of goods and services generated (output) in relation to the total labor hours expended in their production.

Competitive Markets

Markets characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price taking behavior.

Equilibrium Level

A state in a market where supply equals demand, resulting in stable prices and quantities where no economic forces are compelling a change.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital.